Australian Securities Exchange (ASX) traded esports media and software company Esports Mogul announced Wednesday that it has received binding commitments to raise $8M AUD ($5.75M USD) in an oversubscribed share placement. Esports Mogul, which went public in 2016, currently has a market capitalization of $26.55M ($19.07M).
The company revealed the intention to use the investment proceeds to “support continued innovation of Mogul’s tournament platform, accelerate monetization strategy around brands, further international partner expansion, and continuing to secure partnerships with PC and mobile game publishers.”
Under the placement, Mogul will issue 800M new ordinary shares in the company at an issue price of $0.01 ($0.0072) per new share, representing a 23.08% discount on the company’s 15-day volume-weighted average share price (VWAP). The placement will be conducted in two tranches, with the first tranche yielding roughly $5M ($3.59M) on or before Oct. 23. The second tranche is expected to close on or before Oct. 31, 2022, adding approximately $3M ($2.16M) to Mogul’s funds.